The Central Board of Direct Taxes (CBDT) has amended the e-advance rulings of 2022 vide notification no. S.O. 2569(E) issued on 12th June 2023. The new amendment rules are called the e-advance rulings (Amendment) Scheme, 2023 and came into effect on 12th June 2023.
The Central Government amended the E-Advance Rulings Scheme, 2022 in accordance with the authority granted by subsections (9) and (10) of Section 245R of the Income Tax Act, 1961 (43 of 1961).
The amendment is regarding the majority rule mentioned in paragraph 6 of the scheme. If the e-advance ruling board has any difference in opinion on any point or points, may refer such point or points to the Principal Chief Commissioner of Income-tax (International Taxation), who shall nominate one Member from any other Board for Advance Rulings.
The decision on such point or points will depend on the decision to the opinion of the majority of the Members. According to the new amendment, a new clause (v) was added. The clause (iv) of the sub paragraph (C) of Paragraph 6 will be subjected to the provisions of the newly added clause (v).
The pronouncement of the ruling must be subjected to the provisions of the clause (v). The majority ruling is important while pronouncing the decision.
Extract of the Notification
According to the notification, in the e-advance rulings Scheme, 2022, in paragraph 6, in sub-paragraph (C), for clause (iv), the following clauses shall be substituted, namely:––
“(iv) the Board for Advance Rulings shall, after considering the response as referred to in clause (iii), and after providing an opportunity of being heard (through video conferencing or video telephony) under subsection (5) of section 245R of the Act on the request of the applicant, subject to the provisions of clause (v), if applicable, pronounce the advance ruling on the question specified in the application and send a copy thereof to the applicant and the authority to whom the reference has been made;
(v) if the Members of a Board for Advance Rulings differ in opinion on any point or points, the Board for Advance Rulings shall refer such point or points to the Principal Chief Commissioner of Income-tax (International Taxation), who shall nominate one Member from any other Board for Advance Rulings and such point or points shall be decided according to the opinion of the majority of the Members.”
The Central Board of Direct Taxes (CBDT) has notified the E-Advance Rulings Scheme, 2022 on 18th January 2022. The Board for Advance Rulings shall pronounce e- advance rulings of applications allocated or transferred to it under paragraph 5, in accordance with the provisions of this Scheme.
Read More: CBDT notifies E-Advance Rulings Scheme, 2022
According to the “e-advance rulings Scheme, 2022,” taxpayers will have an appropriate opportunity to be heard at hearings before the Board for Advance Rulings through video conference or video telephony.
Read More: All you want to Know about E-Advance Rulings Scheme, 2022
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
